thank you for joining, here for megyn. and "studio b" with shepard smith starts right now. >>shepard: the news begins anew, box one, the convicted liar, casey anthony is in longer behind bars. so where is the former mother who never reported her daughter "missing." word from her lawyers. fascinating stuff. box two, a stage tumbles sending thousands run are for cover. and an update on the serious injuries. box throw: if you pay to check a bag on an airline, and the airline loses your bag, should you get the money you pay to send the bag back? a senator says you should.

first from fox at 3:00 in new york police in california are now investigating another death connected to a millionaire drug executive. last week, somebody found the body of the executive, rather, found a body of an executive girl hanging from a balcony. investigators say she was stripped naked with her hands and feet tied. two difficulties earlier the girlfriend had reportedly been taken care of the man's six-year-old son when the child fell down the stairs at the mansion. and now the family confirms the little boy has died. a developing story. and trace has that story from the west coast. the cops say they do not believe these two deaths are connected, right? >>trace: for now they don't. but they do acknowledge this situation is "very bizarre." they believe the death of the six-year-old boy falling down the steps was a horrible accident but the death of the

live in girlfriend, very strange, indead. it is still unclear if it was a murder or suicide but few suicides where your lands and your feet are bound. the man who owns the mansion was not home when the body was found which was found by his where who lives in a guest house. the brother and everybody is being investigated but the investigation is just going. >>shepard: what more do we know of the executive? >>guest: he is an aaggressive businessman, the founder of a pharmaceutical company that sells skin care products and reportedly made $700 million last year but he has also been the focus of a number of lawsuits. married twice. divorced twice. two teen children. and when he lived with his second wife outside of phoenix we learned some 9-1-1 called were made from their home to police. and in a few minutes the police in arizona are going to release

the details of the calls. it should be interesting to find out what it was about. we will bring that information to you when we get that information. >>shepard: thank you, trace. more than 24 hours advocacy anthony left the orange county jail in orlando, her where abouts are closely guarded secret. an attorney said today that there is an elaborate plan to protect the central florida mom from people with "link mob mentality." and he is referring to public outrage that erupted after the jury acquitted casey anthony of killing her daughter. the controversial verdict allowed the 25-year-old to be free after three years behind bars while awaiting trial. she left jail early on sunday morning and the sheriff armed with semiautomatic rifles escorted her to a waiting s.u.v. and the attorneys say there have been multiple death threats and it is time for people to accept the conclusion.

>> we live in the united states of america. and this young woman had her day in court. and a jury of 12 found her not guilty of murder and aggravated child abuse. we need to start respecting jury verdict and decisions that juries make. >>shepard: and that was baez speaking with geraldo adoubted her future. >> how does they seem to be doing? >> well, i'm not a therapist. i'm a lawyer. so ... those questions i best left up to the mental health professionals. i know casey has been through an incredible traumatic event in her life and she has had a number of them over the last three years and we are certainly going to do our best to get her in a position where she and help herself and move forward in

life. >> what is making everybody crazy and you know this, is the feeling she will cash in, now, make millions off this terrible tragedy. what is your response to that? >> well, i can respond to this, she has certain rights as an individual in this country and we will labor hard to make sure she has the ability to exercise those rights. >>shepard: so it sounds like we may hear from casey anthony herself, and now live from orlando this afternoon. casey, what else do we know about the release? casey curry this is -- casey cuy there is a real possibility she jumped on a plane after she was released and the reason why some people think that is because around the same time she walked out of the front door back here behind me at the jail, we can tell you that there was police activity at a private airport. the orlando executive airport,

protests were also there, and a twin engine jet airplane was fueled up. it was running. and sitting on the runway but no one physically saw casey anthony board that aircraft. officials at the airport telling us it was carrying golfers back to ohio, but no one knows for sure. that plane left at 1:00 o'clock a.m. and, then, at 3:00 a.m., another private plane departed that airport. mum is the world from officials at the airport in terms of who was on that. right now just a lot of rumors but very few people think that she is still here in florida. >>shepard: there was a report that her lawyers wanted her paints to act as decoys during the release. what did you know of that? >> that is according to the attorney for george and cindy anthony who told another news outlet that his clients were

asked to be a decoy the evening she was released from jail in an attempt to throw off members of the press that would, in fact, be following her. he claims that request was made by casey's attorney, baez, who you just heard from, who spoke to geraldo but the lawyer said he thought that was too risky and no one would really benefit from it. but the lawyer, by the way, has told the fox news channel that george and cindy anthony watched their daughter's release from jail like so many of the rest of us. >>shepard: thank you, casey, from florida. continuing coverage of this story including the latest legal battles and our legal panel joins us live in the studio just ahead in the news hour. as time runs out on raising the debt ceiling to avoid a possibility economic catastrophe, republicans in the house of representatives are now pushing a measure that many say has absolutely no chance of becoming law. it is a tea party-backed group

of republicans and they call it the cut, cap, and balance plan. the bill calls for slashing billions in immediate spending, caps future spending and propose as balanced budget amendment to the constitution. but democratic leaders in congress say it has no chance. and the white house reports that president obama would, indeed, veto the plan if it landed on his desk. what happens if the president and congress cannot strike a deal on the debt? according to most experts on august 3rd president obama will have to decide what to pay. choosing among social security checks, salaries, members of the military and unemployment benefits and other rries are pummeling the stock market today off 100. but we were down more earlier. bank stocks are taking it on the children today. j.p. morgan down 12.8 percent,

and bank of america down, as well at 2.65 percent. what is the latest from the white house? >> they push for a big deal but the clock is ticking. so we learn that yesterday morning president obama met privately with the top two republicans in the house of representatives, speaker john boehner and house majority leader cantor, the republicans are saying there was not a major breakthrough or serious progress made. a lost questions about what this week means because senior officials at the white house are telling us weeks ago this was, really, crunch time. the window of opportunity from the 15th to the 22nd, and today i asked carney about the significance of this point in the calendar. >> it is not a hard deadline but congress, the administration, all of us working together, need to move this ball down the field this week. >>reporter: that is the perspective from the white

house. carney would not rule out the possibility of other private meetings with top lawmakers to move the ball down the field, so to speak, but at this point we do not hear any reports of a "deal," at this time. >>shepard: still leading republicans are still pushing for amending the constitution, something they know cannot happen. >>reporter: that is right. the republican perspective is you need at the least to cut as much spending as you elevate the debt ceiling. if you give the president $2.5 trillion the republicans want $2.5 trillion in cuts, and that is elusive so the house is going forward with their plan for a constitutional amendment to the states to vote on but there is talk from some in the senate. here is senator graham. >>guest: this limits government spending to 18 percent of g.d.p. on the balanced budget amendment. and over 40 years it has been 18 percent. i'm willing to negotiate a different number but i'm not willing to pass on the current system without change.

>>reporter: graham and others suggest that whether it is republicans in control of the congress or democrats in control of the congress, they have not been able to control spending so, that may be the way to go. >>shepard: mike from the white house, thank you. a 77-year-old united states congressman finds an armed intruder in his home and goes to the mat with him. stay tuned. e's a prize, all rig.

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>>shepard: the phone hacking scandal at news corps "news of the world," is escalating, the parent company of this network, also. several top executives there have already resigned. one under arrest. and the fallout has now spread all the way to scotland yard

today. and now britain's prime minister calling an emergency session of parliament to address the controversy. several news corps executives are set to testify tomorrow before parliament including murdoch and his son, the deputy chief operating officer. it comes after allegations that news of the world employees hacked into the voice mail of a teenage murder victim. the news corps shut down the paper for good amid more damaging accusations that staffers were snooping on people including politicians and members of the royal family. since the scandal broke the shares on the stock market have falling 17 percent, and they are off 4.4 percent today alone. the chief fox correspondent has the news from new york. jonathan? >>jonathan: for the moment the focus of the scandal has moved from news corporation executives to other influential figures in law enforcement and politics. the firestorm engulfing two of britain's top cops and still

threatening even the prime minister, david cameron. he cut short a trip to africa and is headed back to london tomorrow amid calls from the labor party opposition for him to answer "a series of questions about his relationship with a number of key figures," in the hacking scandal. including brooks, the former editor of "news of the world," and former c.e.o. of news corporation british arm arrested and questioned for nine hours on sunday. james murdoch who runs the international operation and is, of course, the son of news corporation c.e.o. and another former editor of the "news of the world," who the british prime minister hired as his communications chief. >> he must take responsibility for the decisions he made in relation to andy and the decisions he made around the contacts he had, for example, with james murdoch and brooks. a sensitive time in relation to

the commercial bid for certain areas. >>jonathan: the prime minister called for an emergency session of parliament on wednesday to "make a further statement." and the assistant commissioner of london's police officer is the latest figure to resign in the wake of the scandal and he was the official who said two years ago that he saw no need to re-open the hacking investigation because he did not believe there was any new evidence. his resignation follows that of the police chief amid questions of journalists paying braves to police officers in return for information. all of this comes ahead of what will be a closely watched parliamentary committee hearing today where the murdochs and brooks are all expected to testify. we will show the hearings, live, here on fox news channel tomorrow. >>shepard: thank you, jonathan. we will chat about the headlines throughout the hour on

foxnews.com/shep. click on "on the hunt," link for jonathan. yes, bunga-bunga time, a judge has rejected defense motions today in the italian prime minister's silvio berlusconi's underage sex trial. the court shot down a request from the prime minister's lawyers to move the case out of milan. he faces charges for paying for sex with an underage girl known to one and all at "ruby, the heart stealer" during some of his bunga-bunga sex parties. the prime minister denies he paid for sex. and mr. berlusconi is a deficit in at least two other trials. >> what if you could walk through airport security with your shoes on and you did not have to take out your computer. a few will get the chance to do just that. we will explain ahead.

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>>shepard: and a senator is asking the airlines to give out refunds for those checked bag fees if they lose your luggage even if they are only missing for a knew hours. the democratic senator schumer says he will push a bill to make the refunds mandatory if the airlines do in the do so voluntarily. this is weeks before a new law is requiring airlines to offer refunds for lost bags but only if they are gone forever. whatever that means. and now, a travel expert and founder of www.faircompare.com so, what do you make of this? >>guest: it is politics. they are playing passengers'

extreme dislike for bag fees. a lot of people think when they pay a bag fee it is a cargo fee but, also, an insurance policy, right? so, we have one airline, alaska airlines, that is doing a marketing program if the bag is not off the plane in 25 minutes they refund part of the fee with a voucher so it is not unprecedented but it is playing on everybody's dislike for airlines. >>shepard: by their estimate she got $4 billion collectively off baggage fees alone, and you make the point that without the baggage fees ... >>guest: well, absolutely, airlines without the baggage fee would have made no profit and they would have made worse losses and we would be looking at bailouts. the other thing to note is we pay $10 to the t.s.a. for the

ability to get through security on every ticket so if we do not get through in a timely fashion should we get a refund? we should ask that, as well. >>shepard: can you imagine anything like that happening in washington right now? >>guest: right now? absolutely not. the passenger bill of rights has been stuck in congress for a long time. we have seen the department of transportation dishing out rules, and they have been aggressive recently, and this is a good first step. this is a little bit of grandstanding. >>shepard: as one who travels a fair amount, this thing of "express screening," at the t.s.a. lines intriguing, they are trying it in a few cities. >>guest: well, in chicago they have been testing it with pilots and will try it in dallas. a cut in line, you pay $100 to $200 and you actually submit to some questions ahead of time,

you have your passport, you can get your eye scanned and you bypass the normal security line with minimal security risk that you are and cut in line in front of everybody else and it will cost teen $100 and $200. >>shepard: do you do that repeatedly or once, and you travel easier? >>guest: once a year between $100 and $200 and they have these programs with "clear" program in a couple of airports and they are trying to say, look, if you are a frequent traveler, we will get you in the lines where you can bypass others. they are trying to change security. it is like trying to find a needle in a haystack and right now the zero tolerance policy has everybody up in arms. >>shepard: no doubt about that. great to see you, rick. a home invasion targeting a u.s. congressman. we will explain what he did when he came face-to-face with the intruder. that is ahead.

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>>shepard: this is "studio b" at the bottom of the hour and time for the top of the news. after weeks in the spotlight casey an don't is in hiding. she left jail after a jury found her not guilty of killing her daughter but is facing several lawsuits that could force her back into public eye. we and now to the lawyers. former prosecutor arthur aidala

and criminal defense attorney randy zelin. she seemed happy at sentencing, a smile and yesterday she left. >>guest: she is off. she is done. she is contemplating her future as a millionaire. so, why not be happy? forget the fact that her daughter is dead. >> she will either go on and be a semi celebrity that someone blows her away, some nut job who thinks she should have been found guilty or she shaves her head, moves to canada, and tries to be a waitress or secretary and lives her life. >>shepard: but there are legal issues. >>guest: and there is something else she could do. she could use this opportunity to actually better herself and better people and her. she could start a foundation but

she could start a foundation. she could do that, start a foundation, she could--. you will disregard what the jury found, right? >>shepard: the casey anthony foundation. >>guest: why not? >> why not? why not? >>guest: donate money to women there have been abecaused, -- abused. that is what she should do. should do. >>shepard: she could write the book we know is coming and give the money to protect the children foundation. >>guest: she could. i just ... don't think that is what will happen. if she makes $5 million and gives it all to charity 4 percent of the population will say, well, that is nice and 90 percent will say a mother who killed her kid is on the

streets. >>shepard: if the whole family got together, mom, daddy who supposedly abuzzed her and brother who supposedly abused her, and sat around in a room, for a fee, told the whole story what would that be worth? whatever the story is. >>guest: shep, you are in the best position to ask that. >>shepard: there are organizations outside of classic organizations that pay for stories. >>guest: they were talking about selling it in europe and doing what you said, a hybrid, not selling in america but selling it to the european markets where they think they could get the money for it and giving it away in america. >>shepard: you mean like the tabloids over there? i'm not sure they ... >>guest: they think france, spain and italy are excited to read about casey anthony. >>guest: it would be night if

some good could come from this and as far as the nanny, if i were casey anthony and zanny the nanny's lawyer i would resolve this now for a couple of bucks, chill out, and make some money. >>guest: what bucks? >>guest: the case isn't worth anything. >>guest: and now she is on a lear jet wherever she went. >>shepard: i wonder how high the moral dilemma is, if she told the whole story and you knew she was paid to do it, could you stop yourself from watching the whole story? as one who has lived this, it would be hard not to watch. if she is going to do it, everybody wanted from o.j. the "real" story. >>guest: if i did it, and then--. >>shepard: "here's what i did." >>guest: if she said i put a little chloroform on her and i panicked and dumped her, maybe,

but if i beat her and threw her against the wall, and you know ... i don't think so. >>guest: no matter what she says look at millions and millions who watch thed trial, the story will have less, it will have more. it will be insanity. but, again, maybe some good could come from it. that would be the ideal. >>shepard: we love ideals. >>guest: and maybe i'll wake up with hair. >>shepard: i think that would be weird. >>guest: i have high school pictures. >>shepard: he does the joke with the kids, little kids, why does everybody else have hair? can you explain it? gentleman, than you -- thank you both. president obama nominated a new candidate for overhauling of financial regulations. president nominated former ohio

attorney general and we are told he has a reputation for aggressively investigating foreclosure practices. the women, many say, the woman many say though expected to get the nomination did not get it. what is warren's reaction? >>reporter: she appeared alongside the president and cordray and says he is just the man to run the agency. >> i recruited richard for this job. he is the perfect guy because he is tough. and he is smart. he has the right background and he has the right inner spirit for this. >>reporter: she is calling for a quick confirmation. >>shepard: inner spirit. why are republicans so opposed ... opposed to the white house nomination? >>guest: it is not about him as the agency. that is the bigger problem for

them. they want changes to the way it has been set up and without that, they say it will be the most powerful least accountable entities in washington. reaction came from richard shelby, saying "until president obama addresses our concerns by supporting structural changes we will in the confirm anyone to lead it. no accountability, no confirmation," but the president says he will fight efforts to repeal are on undermine the changes made by the agency. >>shepard: so it is all politics. >>reporter: it would appear so. >>shepard: like everything else, washington is broken, washington doesn't do anything and nothing can happen. they fight, and here comes the debt crisis, no one has a job. they fight. they have to have control of the sinking ship. thank you. an iowa congressman fighting off an armed intruder after the man broke into his house and tried to attack his daughter. it happened over the weekend at the home of 77-year-old democratic congressman boswell.

his spokesman says that the congressman tried to grab the man's weapon and the spokesman said that is when the congressman's son grabbed a shotgun and scared away the suspect. the family is shaken up. but no one seriously hurt. the united states is starting the troop draw down in afghanistan as the violence is rising as it is every summer. and what changes in leadership mean. the stronger the rapids, the more we loved it.

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details in new york city. we are told the storm came, almost with no warning. >>reporter: it was a freak storm. the concert is one of the biggest in concert, the blues festival, 12 days long, and after 8:00 p.m. last knit with a giant crowd of 10,000 people on hand watching the huge park, take a look at the horrifying result when the powerful thunderstorm blew in. >> when that happened the classic rock band "cheap trick," was 20 minutes into the act. and five were hurt, but not seriously. officials say they were watching the weather when what was a "warning," turned interest a severe situation. that sent the giant stage several stories tall, collapsing backwards and people said it happen sod fast that everybody started screaming and running.

>> you suddenly see lightning and, bam! >>reporter: at the time the winds in the area were 56 miles per hour. >>shepard: given the extent of the damage a lot of observers were surprised how low the number of hurt people was. >>reporter: you can see that. and it blew back as you can see, not forward. if it blew forward it would have slammed into the crowd and amazingly the band members on the stage when it happened were not injured. the manager said out of nowhere the wind hit and he said it was huge. it blew everything around like symbols and he heard the rivets popping like the titanic. they were all running. thankfully it was just a miracle no one was killed and he says, of course, gear can be replaced. but people cannot. and an investigation is now

underway to find out what marriage the stage give way. >>shepard: thank you from new york city. general petraeus handing over command of america's longest war as the united states prepares to begin with drawing from afghanistan. general petraeus took over in that country a year ago after the predecessor made controversy los angeles comments to "rolling stone," magazine. the general is leaving to head the c.i.a. and leaving the successor a war that is far from over. and now, from san diego, author of "the world's most dangerous place." how do you see things? >>guest: well, most of the heavy lifting the next few years will be wrapping things up and transferring security operations to the afghan people. this is the right man for the job because general petraeus was a temporary slot, anyway. >>shepard: the men in charge

who were in the opposition to president obama's party today i have heard on the radio and elsewhere saying, well, he is pulling out just as we were having a chance to win, and things were getting better and the strategy was right. what is your observation of this? >>guest: well, general petraeus' surge strategy was to focus resources on one success story at a time and shift the balance but it was never a national strategy. there is much, much bigger problems in afghanistan than what we are trying to solve. kandahar is safer and it it is better but as can see from the asass in addition of karzai's brother's assassination, it is still the same thing. >>shepard: the taliban are still, in large part, with their judicial system on wheels, and still have much in control in many places? >>guest: yes, but the taliban is shifting.

they are trying to get back into power but, at the same time, the north has form add new political alliance that will never let the taliban rule so we are headed for a divisive period in politics over the next two or three years. >>shepard: what is your sense as this wraps up, what might have been accomplished? >>guest: we have shifted afghanistan toward america's values and ideas and when you go to kabul or kandahar and walk around people feel like they are part of the world and no longer buried in a draconian regime. we have done an amazing amount of good work with the infrastructure projects. but we took that country from zero to 60 in 10 years so you will see a lot, a lot, a lot of fighting and infighting, as well, much like when the russians left. people will make grabs for power in the power vacuum. so both good and bad. >>shepard: we're safer?

>>guest: no. we are still under threat from a group of islamic fundamentalists called al qaeda and i spend my time in somalia and the same thing is going on there that was going on in 1995 afghanistan so we are not done. >>shepard: this is about pakistan anyway, isn't it? >>guest: well, the reason we got into this mess is because of pakistan in the 1980's and we pumped $6 million into the system creating the monsters we are fighting now. keep in mind if you step back and look at global stage the world is better but it is a direct threat against american interests overseas from islamic fundamentalist groups that use violence instead of political means. >>shepard: robert, good to hear from you. the united nations has reported 1,462 civilian deaths in six months of this year in afghanistan a 15 percent increase from the first half of

2010. in parts of the midwest in the central united states, another day of triple digit temperatures. the heat wave is a monster. i know, it's july. it's hot, but this can kill people. 17 states are now under heat warnings and we will show you warnings and we will show you all of them. new citracal slow release... continuously releases calcium plus d for the efficient absorption my body needs. citracal. carol. fiber makes me sad. oh common. and how can you talk to me about fiber while you are eating a candy bar? you enjoy that. i am. [ male announcer ] fiber beyond recognition. fiber one. sure, but let get a little information first.

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>>shepard: rescue divers have located two sailors, dead, after the boat capsized during a race on lake michigan. the race officials say the team recovered the bodies eight hours after the boat overturned. sailors on another vessel reportedly notified officials and rescued six others who were on board during an annual race

from chicago to mackinaw island. a man whose son was on the capsized boat says the crew was overwhelmed by sudden strong winds and high waves. a fox weather alert. major heat wave as you probably know, crippling half the country at this moment, from the rockies to the east coast. a look at today's high temperatures tell part of the story. triple digits in several states. if the high in new york city is 93 i am a monkey's uncle. parts of arizona and southern california 110. forecasters want the heat will not let up any time soon so now the weather machine is on the heat wave watch. >> the midwest and upper mississippi valley and this is hanging on for the next several days. the heat advisories, where heat indexes, what it feels like with the temperature and the humidity involved, it will feel like 105 to 115.

so, now the current temperatures across the effected region, 95 in de>>megyn:, 91 in peoria and 94 in minneapolis but with the drop dallas air, it feels like 109 in minneapolis, 109 in although cross and 100 in daven port and 109 in des moines. your body cannot function in this type of heat and it will last much of the work week and into the weekend. >>shepard: moving east? >> yes, it is like a heat pump pumping up warm air from the south and the mid-atlantic and northeast and the southeast will feel it by late this week into the weekend. >>shepard: thank you, we will be watching. breaking news now on fox news channel, and it of the phone hacking scandal at the new corps british tab lid, "news of the world." police in england confirm the former staffer who blew the

whistle on the newspaper which has been shut down has been found dead in his home. it accused the former editor of encouraging employees to tab into people's phones and new corps is the parent company of this network and our chief correspondent for the fox report has the details of this live from the newsroom. the whistleblower on the "news of the world," found dead. >>shepard: his was a former show business reporter for the "news of the world," the first journalist to publicly claim that former editor of "news of the world," was aware of the phone hacking and worked on "the sun," and "news of the world," before being fired for drink and drug problems. he was treated for addiction issues and police have confirmed his death and they say "the death is currently being treated as unexplained but not in the to be suspicious."

police investigations into the incident are ongoing. that is a picture of hall. he told "new york times" that not only did they know of the phone hacking but he encouraged the staff to intercept the phone calls of celebrities in the pursuit of exclusive stories. and he also claimed reporters of the "news of the world," were able to use police technology to locate people using their cell phone signals in exchange for payments to police officers. >>shepard: jonathan, thank you, hearings in the united kingdom and a special hearing will be televised like tomorrow here on fox news channel and fox business. nasa's final shuts mission is ending. lots of hugs ats crew of the international space station said goodbye to the four astronauts. the shuttle delivered five tons of equipment and supplies and they brought up a model of the shuttle itself and the united

states flag which was on colombia during the first shuttle mission in 1981. "atlantis," will undock tomorrow morning and land at kennedy space center before 6:00 a.m. on thursday, eastern time, and we will have live coverage crucial the nation and around the world. storm troopers lost the war for the empire and now one has crossed over to the go side. details on a long march for charity. ♪ smetimes when we touch ha ha! millions of hits! [ male announc ] flick, stack, and move between active apps seamlessly. only on the new hp touchpad with webos.

>>shepard: a georgian embassy guard attacking topless protesters in the ukraine. and there is video. the women demonstrating against the recent arrest of journalists in georgia on charges of spying. the embassy guard shoved the women and punched the cameraman in the face. the police officer s cored the guard inside and the embassy reports that it has fired that

guard. an australian man set off on an incredible jump any for charity walking 2,500 miles from the west coast to the east coast of the country dressed as a storm trooper from "star wars." here he is. jacob says he is trying to raise $50,000 for the children's foundation which helped seriously i alexandria kids and their families. he started the walk in perth on wednesday and hopes to arrive in sydney by december. in order to make it that way we are told he has to walk at least 20 mile as day, five day as week. and he says it gets very hot inside that suit. good idea. good cause. that is it for "studio b" and back tonight for the fox report and the evening news at 7:00 eastern. the markets had a rough day but were up from the low down